O93-05ORDINANCE NO. 93-3
AN ORDINANCE OF THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA,
AMENDING CHAPTER 18 OF THE CODE OF
ORDINANCES, ARTICLE II, EMPLOYEES PENSION
PLAN, DIVISION 5, ADMINISTRATION OF THE
PLAN TO DESIGNATE THE PLAN AS A QUALIFIED
PLAN UNDER SECTION 401 OF THE iNTERNAL
REVENUE CODE AND DESIGNATING THAT THE
PLAN BE AN EXEMPT ORGANIZATION UNDER
SECTION 501 OF THE INTERNAL REVENUE CODE;
PROVIDING FOR ADMINISTRATION IN
ACCORDANCE WITH THE PROVISIONS OF SECTION
415 OF THE INTERNAL REVENUE CODE;
PROVIDING FOR DISTRIBUTION OF BENEFITS;
PROVIDING FOR CONFLICTS, CODIFICATION,
SEVERABILiTY AND AN EFFECTIVE DATE.
WHEREAS, the City submitted a request to the Internal
Revenue Service to change the pension plan for general
employees from a post-tax to a pre-tax status; and
WHEREAS, the Internal Revenue Service issued a favorable
determination letter to the City approving the request; and
WHEREAS, the proposed change is beneficial to the City
and the employees covered by the Plan;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA, AS FOLLOWS:
Section I. That Chapter 18, Article II, Division 5 of
the Code of Ordinances of the City of Boynton Beach, Florida
is hereby amended by adding a new Section 18-154, as follows:
Sec. 18-154. Qualified Pension Fund.
a. The City intends the pension fund to be a qualified
plan under section 401 of the Internal Revenue Code, as
amended, and that the trust be an exempt organization
under section 50! of the Internal Revenue Code. The
Board of Trustees shall administer the pension fund so as
to fulfill this intent.
b. Other provisions of this ordinance notwithstanding,
the Board of Trustees shall at all times administer the
retirement system in compliance with the provisions of
section 415 of the Internal Revenue Code which are
applicable to public employee retirement plans. In
determining maximum benefits under section 415,
"compensation" shall have the meaning given such
term by section 415(c)(3). In the event that a
member belongs or belonged to a defined
contribution plan sponsored by the City, the
benefits payable under this ordinance shall be
reduced if necessary to comply with section 415(e),
if applicable.
c. Notwithstanding any provision in this
ordinance to the contrary, the distribution of
benefits shall be in accordance with the following
requirements and otherwise comply with Code Section
401(a)(9) and the regulations thereunder (including
Regulation 1.401(a)(9)(2), the provisions of which
are incorporated herein by reference:
(1) A member's benefit shall be distributed to him
not later than April 1st of the calendar year
following the later of (i) the calendar year
in which the member attains age 70-1/2 or (ii)
the calendar year in which the member retires.
Alternatively, distributions to a member must
begin no later than the applicable April 1st
as determined under the preceding sentence and
must be made over the life of the member (or
the lives of the member and the member's
designated beneficiary) or the life expectancy
of the member (or the life expectancies of the
member and his designated beneficiary) in
accordance with the regulations.
(2) Distributions to a member and his
beneficiaries shall only be made in accordance
with the incidental death benefit requirements
of Code Section 401(I)(9)(G) and the
regulations thereunder.
Section 2. That all ordinances or parts of ordinances
in conflict herewith be and the same are hereby repealed.
Section 3. Should any section or provision of this
ordinance or portion hereof~ any paragraph, sentence, or word
be declared by a court of competent jurisdiction to be
invalid~ such decision shall not affect the remainder of this
ordinance.
Section 4.
ordinance.
Section 5. This
immediately upon passage.
FIRST READING this
1993.
Authority is hereby granted to codify said
ordinance shall become effective
~0 day of April, 1993.
/
SECOND, FINAL READING and PASSAGE this ~ day of May,
CITY OF BOYNTON BEACH, FLORIDA
ssio
Comm¢~6ner
ATTEST:
(CORPORATE SEAL)
Pens.Ord
4/16/93